# Stock Market 101 - PDF by junglesister

VIEWS: 90 PAGES: 5

• pg 1
21st Century Learning
Money 101: Stock Market
Curriculum Guide

Vocabulary

Stock market – a place in which shares of stock are traded

Share – a portion; owning part of a company

Stock – a share of ownership in a business

Capital – money

Traded (in terms of the stock market) – bought or sold

Ticker symbol – abbreviation for a company’s name

Brokerage – companies that charge a fee to buy and sell an investor’s
stocks

Broker – someone who invests your money

Activity 1: Understanding Concepts of the Stock Market?
The following is a simplified scenario that explains the basic concepts of stocks,
shareholders and risks. Explain to students that this will allow them to explore just the
foundational concepts of the stock market. Students are likely to begin thinking beyond
this scenario as they participate in the activity.

Share the following scenario with students:

Anita wants to set up a lemonade stand, and sell fresh squeezed lemonade. She has
\$10.00, which covers the cost of lemons, sugar and ice. However, she will also need a
pitcher and cups (equipment). Anita does not have enough money to cover all of her
expenses.

Susan and Micah say they might pay for the pitcher and cups, if Anita shares her profits
with them. (This would be like buying stock in Anita’s company.)

Anita readily agrees, so Susan and Micah must to decide if they think it is a good
investment. All investments are risks, but there are a few variables Susan and Micah
The pitcher and cups cost \$5.00, so Susan and Micah will each invest \$2.50. \$2.50 is
16.5% of \$15.00, so 16.5% of total profit is the return they would each get on the profits

Work in pairs or groups of 3-4. Discuss all factors and options you might consider if you
were Susan and Micah.

Here are the facts:

•   Run by Anita
•   Open 2 days
•   Located at the city park

Here are some factors to consider. As your group discusses, add new variables to the
list.

Shareholder Risks:
1. How much money is this business likely to make?
2. How much profit is necessary to make it worthwhile as the stockholder?
3. How much must each glass of lemonade cost to make this profit? Is that
reasonable?
4. Is it possible the lemonade stand will lose money?
5.
6.
7.
8.

Create a short scenario of how this might play out if Susan and Micah invest in Anita’s
company? How well does the company perform? Was it a good investment for Susan
and Micah? Use exact amounts of money in your description. You will present your
scenario to the class, so you can describe the scenario in essay format, bulleted points,
or illustrations.

Teacher Notes:
Here are some sample scenarios:

•   It rains that day, and Susan and Micah lose their money.
•   Anita makes \$50 total = \$35 profit so Anita gets \$23 profit and Susan and Micah
each get \$5.70.
•   There is a huge family reunion that day at the park, and Anita makes \$100 so
Anita gets \$56 and Susan and Micah each get \$14.
Students can use what they learned in this simplified example to understand the
stock market activities on the following web pages.

Activity 2: Adding on to Our Understanding

Use the following website to expand your knowledge of the stock market.
http://www.themint.org/kids/what-is-the-stock-market.html#

Activity: Read the page together. Use the T-chart at the end of this lesson to compare
the simplified lemonade stand scenario (above) to the information gained from this
page.

Activity 3: Elaborating with Real World Examples:
Use the following website and activity to continue your discussion with students about
the stock market and to further elaborate on their understanding of how the stock
market works.

http://ecedweb.unomaha.edu/lessons/mark1.htm

Activity 4: Applying Our Understanding of the Stock Market
Use the following website to learn how to read the stock market pages in the
newspaper. Learning how to read the Stock Market Pages:

ThinkQuest
+market%26dm%3Dlang%26page%3D1&q=stock+market&o=0&l=dir&s=k&dm=lang&qt=0

Young Investor
&q=stock+market&o=0&l=dir&s=k&dm=lang&qt=0
Building Our Knowledge of the
Stock Market
Scenario                Explanation
Teacher Notes:

Simplified Scenario      Explanation

open 2 days)      shareholders may
make money over
several years

was a start up    may be in business for many
business with     years so potential stock
more risk         holders can research
patterns of success/failure
before investing

Susan and Micah       Susan and Micah
may lose all their    could keep their
money with not        stock and make a
chance to make it     profit the
back                  following year or
later

To top